He just means that although he normally uses FLAC, he can't really even distinguish them from lame v7 or cbr 112 files (probably as low as he goes). he's just trying to point out that no matter what he tries, he doesn't seem to have an "ear" for hi-fi, and as many others have said - more power to ya. If you enjoy the music, then just enjoy it... then again, SOMEthing made you think there was more out there. But if you can't hear it, then you're just wasting $$.
Hellicopter: my 2 cents--
"Listening" to music is a taught or learned skill. I don't believe anybody is really born with it. Some people can teach you some things. You can self teach and learn on your own. A lot of it boils down to detail and resolution.
One more thing I might add, the source material is very important. I've never used Dire Straights as an Eval tune. There may be some cuts on some pressings that are done well, but my experience is most are arranged and recorded so poor as to render them useless for any serious evaluation. I often look at what others use when they do an eval and use those tracks to see if I can here the same resolution or detail they are noticing.
Often this means that I listen to music that I normally would not, were I not trying to do an Evaluation. Paul Simon's Graceland UltraDisc, not my choice for listening, but a Nice Eval set for some details of voice and percussion. If I were not listening to it for eval, it would always be dusty.
Some of it boils down to which one makes you move to the music or tap your toe. I can take two sets of phones and be difficult to put my finger on why one sounds better to me, but I notice that one makes me sing along or just plain smile. That AMP/Phone/OpAmp, whatever is just doing something musical to me. I may try to pick up where in the track is different but just can't put my finger on it. I just know I like one a lot better than the other, or maybe a little better than the other, whatever. Now I can rank them from my own perception.
In the long run, it's like Cheryl says, "If it makes you happy". That's all it's really about.